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Hi, I need help with my Managerial Finance assignment please... 5.The Omega Corporation has some excess cash that it would like to invest in marketable
Hi, I need help with my Managerial Finance assignment please... 5.The Omega Corporation has some excess cash that it would like to invest in marketable securities for a long-term hold. Its Vice-President of Finance is considering three investments: (a) Treasury bonds at a 7 percent yield; (b) corporate bonds at a 13 percent yield; or (c) preferred stock at an 9 percent yield. Omega Corporation is in a 40 percent tax bracket and the tax rate on dividends is 10 percent. a-1. Compute the after-tax yields for the three investment options. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) Aftertax yields a. Treasury bonds b Corporate bonds c. Preferred stock
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